NASHVILLE—Greg Gonzales, Commissioner of the Tennessee Department of Financial Institutions, announced today that the maximum effective formula rate of interest in Tennessee is 12.50 percent per annum. This rate is based on a ceiling of 4 percent over the weekly average prime loan rate of 8.50 percent, as published by the Federal Reserve on August 5, 2024.
Commissioner Gonzales stated that this rate will remain in effect until the Federal Reserve Bank announces a change in the average prime loan rate. This announcement is in accordance with Chapter 464, Public Acts of 1983, which mandates that the Commissioner of Financial Institutions make a weekly announcement of the formula rate of interest.
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For further information, please contact Alica Owen, Public Information Officer at the Tennessee Department of Financial Institutions, at (615) 289-4738.
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New Home Loan Interest Rate Announced
The Commissioner of Financial Institutions has set the maximum home loan interest rate at 8.31 percent for September 2024, following the discontinuation of the free market auction system by the Federal National Mortgage Association. This rate is based on long-term government bond yields and those affected are advised to seek legal counsel regarding related federal regulations. For more information, contact Alica Owen at the Tennessee Department of Financial Institutions.